If supply is perfectly elastic, the supply curve is
A)vertical
B)horizontal
C)any straight-line supply curve
D)any supply curve intersecting a perfectly elastic demand curve
E)any supply curve intersecting a demand curve which is unit elastic

Question

Quizplus · Accepted Answer

A perfectly elastic supply curve means that the quantity supplied will be infinite at any given price. As a result, the supply curve will be completely horizontal because the quantity supplied will not change at any price.

If Supply Is Perfectly Elastic, the Supply Curve Is